Home insurance is a significant investment that safeguards your home from any risks. Unknown to many, homeowners’ insurance policies contain different sections. For example, a structures coverage section, also known as coverage B. This guide includes everything you need to know about structures coverage and whether you need it.
Introduction to Structures Coverage
It’s a part of your home insurance policy that covers structures around your home or property that aren’t directly connected to your home. Structures coverage is commonly insured at 10% of your home value.
Structures coverage helps protect objects, buildings, and other additional property around your home from risk. Thus, other than home insurance protecting your house, the structures around it get insured too.
What Qualifies as Structures?
A standard home insurance policy defines structures as residential premises other than the clear home space. They’re structures connected to the home through a utility line, fence, or similar connection. Therefore, any structures around your property but not directly attached to your home are covered by the structure coverage.
● Outside dining areas and patios
● Guesthouses in the compound
What Does Structures Coverage Protect Against?
A structures coverage helps protect the specified structures against risks such as fires, lightning, theft, windstorms, and vandalism. However, the coverage will offer the same protection as your home insurance.
When signing up for home insurance, you should be aware of the reimbursement terms. How much will your insurer pay you in case the risk occurs? Most policies offer reimbursement similar to your home replacement value without accounting for depreciation.
However, other insurance companies can reimburse the actual cash value deducting depreciation, while others will pay the replacement cost. So, consider asking more about structure coverage from your insurer.
Do Home Businesses Qualify as Other Structures?
Insurance companies always consider the use of the structure before including it in the coverage. For example, if you have a large compound where your home rests and still have a business in the backyard, the insurer may fail to cover your business under the structure's coverage.
However, some policies can cover business property around the home, but to a specific limit. Therefore, it’s safer to always seek a separate policy for your business for full coverage
How Can You Check How Much Coverage You Have?
If you are new to home insurance, it might be hard to estimate the coverage of the structure you have. However, you can check the information from your policy to determine how much structure coverage you have. Although coverage is typically 10% of your home value, it may vary depending on your policy.
You can also opt to add other structures coverage to your policy. For example, when you have expensive structures around your home, the coverage of the structure in your home insurance may not be enough. In this case, you can talk to your insurer and let them know you would like additional structure coverage.
Why You Need Structures Coverage
When getting your home insurance policy or renewing it, it’s common to reduce the costs. However, structure coverage is essential, even if it may seem invaluable when taking out your policy.
Although you might not have other structures around your property, the structures coverage is already accounted for in the overall cost of your policy. Therefore, it doesn’t mean you’ll be paying any additional cost to enjoy the coverage. Thus, it doesn’t increase your insurance costs.
Even though you may currently feel you don't have anything that fits under "structures" around your home, in the future, you could make home renovations that may fit the definition of structures in the policy.
Therefore, it’s essential to have more wide coverage than you need than failing to have coverage when a risk occurs. Structures coverage is essential and most needed to help minimize your loss should a risk occur.
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Taking care of your home helps ensure your family is safe. In the event of any risks like fire, home insurance ascertains you of quickly building up back again. Contact us today for expert guidance on home insurance and the right coverage for your home and the structures around it.